As a result of the coming into force of the Proceeds of Crime Act 2002 and the Money Laundering Regulations 2003 various obligations have been placed on solicitors.

Of particular relevance is the fact that solicitors are now required to disclose to the National Criminal Intelligence Service any unusual financial transactions especially where large cash sums are received by the solicitor from their clients.

Accordingly solicitors have to be satisfied that any large payment receive eg in excess of $10,000 has come from a bona fide source.

Therefore do not be surprised if in future your solicitor requires you to explain exactly how you have come to have £10,000 or £15,000 in used £5/£10 notes under your mattress!

Again this is a particular problem with regards to clients who are making purchases of property and paying for this in large cash sums either for the whole purchase price or towards the house deposit.

Those people would have to explain where the monies have come from.

Solicitors have to in fact go one step further and if the money has been borrowed/lent from another party then again enquiries have to be made of that third party who then have to explain again exactly how they came to have the cash. There are interesting times ahead.

It may be argued that Big Brother mentality is prevailing.

The Government's response is that this is to protect innocent citizens from the criminal fraternity particularly of course concerned with regards to drugs money being "laundered" i.e. cleaned. Indirectly of course it also impacts on those who are on welfare benefits as clearly there are capital limits beyond which you are not eligible for welfare benefits.

Fur further information you call me or Ibrar Hussain at The Watson Ramsbottom partnership, 25/29 Victoria Street, Blackburn or telephone on 01254 672222 or email ebrahim48@hotmail.com